This article’s advice is generic in nature and does not consider your unique circumstances.
In a world where online shopping is on the rise, starting your own e-commerce business may be a thrilling and lucrative endeavor.
There are other factors to consider when operating an online business that must be decided before you take the plunge, including deciding what products you intend to sell. Traditional costs associated with a brick-and-mortar storefront, such as rent, a proper fit-out, and signage, are no longer an entry barrier.
However, you must first choose whether you want to sell wholesale or retail before moving on to this phase.
Instead than selling directly to customers, wholesale refers to the process of selling goods to other companies or channels.
Products like wholesale headwear, apparel, white goods, or even wholesale furniture or canned goods may fall under this category.
Wholesalers buy their goods directly from the producer and sell them in large quantities at a reduced price rather than in small quantities.
Retail, on the other hand, offers goods directly to customers and may buy from wholesalers to distribute in-store.
Which is for you – wholesale or retail?
Both wholesale and retail sales have advantages, and it primarily relies on how you want to run your firm.
The scope of wholesale distribution is typically greater than that of retail. You will probably be able to scale more quickly if you sell your product to a larger target market of various businesses.
Distributing to a larger audience also increases the likelihood that your product’s brand awareness will be higher, increasing interest from companies who might carry your goods.
Finally, as a wholesaler, it is much more likely that you will be able to develop internationally.
Any of your companies that distribute abroad automatically increases the market reach of your product, and bulk shipping domestically or internationally is more affordable than having a store send hundreds of individual deliveries.
If you want to establish a more modest enterprise with a more carefully chosen brand in the marketplace, retail distribution is the way to go.
You’ll be able to target a more specific audience, and by getting to know your customers better personally, you’ll probably learn more about their desires and requirements, which will help you develop a more effective sales pipeline.
Since you have more control over product pricing as a retailer than a wholesaler, your profit margin per unit is probably bigger.
Do you prefer retail or wholesale? Petr Magera’s Unsplash image
When deciding which choice is “safer,” retail or wholesale, you will typically discover that wholesale offers less risk but maybe lesser profits.
Since a wholesaler has a much wider customer base and often receives larger orders, there is safety in numbers and a feeling of dependability.
The retailer will ultimately be in charge of selling the goods, and since items will be distributed in bulk rather than individually, less time and effort will be required, and there will be fewer opportunities for expensive mistakes.
However, if you want to create a brand, create a true “customer experience,” and control your own profit margin, or if you prefer a smaller operation that can be run from your home and don’t want the hassle of managing a warehouse, you might think that retail is the “safer” option for you.
Qualities of a safe product
Determining the kind of product or products you are going to sell is a crucial step in developing your online business after deciding whether retail or wholesale is best for you.
The choices for your e-commerce site are unlimited given the vast array of potential products; however, there are several features you may want to take into account for a simpler, safer online selling experience.
Easy to distribute
It should go without saying that choosing, packing, and shipping non-bulky, long-lasting products will save you a ton of hassle.
No matter how carefully you package a vase or bubble wrap a mirror, we are aware that there is a higher likelihood that these items will be harmed in transit.
Additionally, shipping costs increase with item bulk.
Good examples are selling soft home goods, clothing, shoes, books, or services like marketing or business knowledge.
Simple, preset options
The fact is that the more customization options you offer, the more chance for error there is during manufacturing and purchasing.
If the issue is not handled in a way that meets the expectations of the customers, errors at any point during these times could cost you in product, delivery, and even brand perception.
Good examples are items with just one variable, such as t-shirts in various sizes or hats in various colors.
Necessary goods
A product that you are aware is needed by many will be a safer bet to sell than a more specialized one if you are shooting for a broad audience with your marketing.
On the other hand, if you are selling something well-known, you will probably be up against many other companies.
With a solid marketing plan that can include a promo code, free delivery, or other incentive to keep you ahead of the competition, you can stand out from the throng.
Simple cleaning supplies, long-lasting foods, reusable water bottles, and beds are some suitable examples.
Could your’safe’ product be water bottles? Unsplash image by quokkabottles
Qualities of a safe online store
The buyer is likely to have a few safety worries when shopping online.
You have now decided whether you will sell your goods wholesale or retail, and you have also decided what kinds of goods you will distribute.
By doing this, you are ensuring that your customers feel secure making purchases from you during the checkout process.
A secure website
Make sure your website is secure so that customers feel at ease making purchases from you. Clients will look for:
A proper security policy is offered on-site that details the SSL process’s level of encryption, how their data is saved, and how long it is kept.
Not your specialty, are you? When creating your website, make sure you enlist the help of an expert.
Multiple payment options
Australian consumers typically spend over $30M each month of their hard-earned money in the retail sector, thus it’s crucial to offer a variety of payment alternatives.
When designing your checkout, you should take into account Visa, Mastercard, Afterpay, Shopify, Paypal, BPay, Google and Apple Pay as well as other reliable, secure services.
Clarity of product and delivery protocol
During the checkout process, be specific and set expectations for what a product is and how it will be delivered.
Even if this information is provided elsewhere on your website, highlighting it when a consumer is purchasing your product will lessen the likelihood that they will contact you for clarification on a product or an update on the status of their delivery and will improve their overall shopping experience.
Making a secure decision when deciding which goods to sell online extends way beyond the product choice.
Before making a decision, conduct in-depth study and consider all facets of running a business.
